Developing land in anticipation of creating a totally new building may be an exciting endeavor for a company. However, land development also might involve several hurdles, particularly if both parties at the negotiating table have different ideas of what should happen. Nonetheless, if a business in Florida is willing to face these challenges head-on, it can take advantage of promising commercial real estate opportunities in our state.
Office vacancies are still high today in Florida, particularly in Palm Beach County. However, less and less space is becoming available in the area's most desired buildings. In fact, the rate of vacancies in Palm Beach County dropped from more than 21 percent to a little less than 20 percent from 2012 to 2013.
This has sparked some concern since a vacancy rate of no more than 10 percent typically is viewed as being necessary for a healthy real estate market. However, even though today's Florida office market looks a bit bleak, it is beginning to improve and may soon attract new developers. It's worth noting that, unlike the office real estate market, the commercial market actually has been on the upswing since the recession.
Now may be an ideal time for a developer to erect a new building in Florida, thus taking advantage of today's relatively strong commercial real estate market. However, some commercial deals fail because both sides cannot see eye-to-eye on critical parts of the pending transaction. Knowing the law can help a company to seek its own best interests while still reaching a comprehensive agreement that both parties can find mutually agreeable.
Source: Sun-Sentinel, Real estate: South Florida office vacancies remain, Paul Owers, March 19, 2014